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Saturday, June 12, 2010

World stocks rise for 4th day; euro steady

LONDON: World equities extended their relief rally into a fourth day on Friday, June 11 on optimism over global economic growth, while the euro steadied as it ran into headwinds above US$1.21 after three days of gains, according to Reuters.

Commodity prices eased, also snapping three days on the up, though crude prices held above US$75 a barrel.

Investors remained optimistic about China's growth, even though fresh data showed inflation in the world's third-largest economy quickened to a 19-month high in May while its factory output and capital spending moderated.

On Thursday, Beijing announced a sharp jump in May exports, boosting investors' confidence about its economy's strength as Europe grapples with a sovereign debt problem.

A string of successful government bond sales from the likes of Belgium, Portugal and Spain this week has also eased immediate concerns about funding problems for euro zone peripheral countries. Italy comes to the market later on Friday.

World stocks measured by the MSCI All-Country World Index advanced 0.4 percent, helped by a 1.7-percent rise in Tokyo's Nikkei average.

The World Index has gained 1.5 percent this week but is still down 7.7 percent this year.

"Europe should have a bit of a spring this morning following on from the Far East," said Justin Urquhart Stewart, director at Seven Investment Management.